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Thursday 10th of September 2009
September 7, 2009    

Make the most of “inflated” savings rates

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by David Masters

Interest rates on savings accounts are “highly inflated” at the moment because banks and building societies are desperate for deposits, a price comparison site said this week.

Financial providers are offering average bonus rates of 1.93% on savings accounts, compared to 0.71% two years ago, moneysupermarket.com said.

Savers should invest now to avoid disappointment, the price comparison site warned, because the high bonus rates could soon disappear.

“Savings rates are highly inflated at the moment because banks and building societies are still desperate for our cash,” said Kevin Mountford, moneysupermarket.com head of banking.

He added that savers should stay aware of when the bonus rate ends so they can look out for a new bonus deal.

“A really savvy saver can use bonuses to significantly boost their returns as long as they are willing to put in a little effort,” Mountford said.

Top rates available right now on instant access savings accounts include 3.25% at Egg, 3.20% at ING Direct, and 2.80% at Sainsbury’s Finance.

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